Example of General Ledger

The general ledger is the primary record of transactions for a business, and is a primary record of accounting data. The general ledger is based on a series of credits and debits, intended to produce a balance which accurately shows an equal value on both sides of the balance sheet. This is called double entry accounting, and is the traditional Western method of account record keeping. The principles related to the general ledger are also the basis of the standard accounts balance process. General ledgers are also used as primary methods in bookkeeping, usually the most reliable comprehensive method of accounting for small business.

Examples of General Ledger:

To illustrate the posting of transactions in the general ledger, consider the following transactions taken from the example on general journal entries:

Date

Account Names

Debit

Credit

10/1

Cash

8700

Capital

8700

10/8

Car parts

3700

Accounts payable

3700

10/15

Expenses

2000

Cash

2000

10/17

Cash

200

Accounts Receivable

200

Revenue

400

10/18

Expenses

375

Car parts

375

10/25

Cash

625

Accounts receivable

625

10/28

Accounts payable

700

Cash

700

The above journal entries affect a total of seven different accounts and would be posted to the T-accounts of the general ledger as follows: